The Gujarat Electricity Regulatory Commission (GERC) issued Order No. 06 of 2024 to establish a new tariff framework for the procurement of power by distribution licensees and others from solar energy projects in Gujarat. This framework outlines general principles and commercial considerations to guide the state’s renewable energy efforts, specifically focusing on solar power projects.
The tariff framework is designed to promote the use of solar energy in Gujarat, aligned with the National Electricity Policy, 2005, and the Tariff Policy, 2016. It is applicable to solar power projects commissioned after March 31, 2023. The framework mandates that distribution licensees continue to procure electricity from eligible solar power projects through competitive bidding, as specified under Section 63 of the Electricity Act, 2003. This process may involve following competitive bidding procedures outlined by the Solar Energy Corporation of India (SECI) or the Ministry of New and Renewable Energy (MNRE).
For solar projects above the threshold limit, the distribution licensees must procure electricity through competitive bidding, with tariffs determined accordingly. For projects below the threshold limit of 5 MW, which are not eligible for participation in competitive bidding, the Commission has determined a generic tariff for power procurement under Section 62 of the Act. This is designed to facilitate smaller solar projects that may not have the capacity to compete in larger bidding processes. The goal is to ensure fair access and support for smaller-scale solar power producers.
The order also specifies a control period for the tariff framework, which will be effective from April 1, 2023, to March 31, 2027. This control period aligns with the Ministry of Power’s Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, which were implemented to promote the use of renewable energy through open access. The Commission emphasizes that there was no previous tariff order effective after April 1, 2023, for solar power projects, thus necessitating this new order.
Stakeholders, including the Gujarat Energy Development Agency (GEDA), have participated in discussions and provided suggestions on the proposed framework. GEDA requested to be relieved from joint certification responsibilities for small projects injecting power below 66 kV due to manpower constraints. However, the Commission decided to maintain GEDA’s role in verifying the commissioning of renewable energy projects, recognizing its importance as a third-party government agency.
The Commission also discussed various technical and commercial issues such as transmission and wheeling charges, metering points, interconnection points, and the procedure for integrating solar power projects with the grid. These considerations aim to streamline the integration process, reduce costs, and enhance the reliability of power supply from solar energy sources.
The tariff framework established by Order No. 06 of 2024 is a comprehensive approach to enhancing the use of solar energy in Gujarat. It sets out clear guidelines for both large and small-scale solar projects, ensures competitive procurement processes, and addresses critical operational and regulatory aspects to support the state’s renewable energy goals. The Commission’s proactive measures are expected to accelerate the adoption of solar energy, thereby contributing to a more sustainable and energy-efficient future for Gujarat.
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